In a clarification, Revenue Department said that Maruti SX4 and Toyota Corolla Altis will attract lower excise duty of 27 per cent and not the higher levy prescribed for SUVs.
"...it is clarified that the afore-cited motor vehicles (Maruti SX4, Honda Civic and Toyota Corolla Altis), which are known as sedans, will attract the excise duty of 27 per cent as applicable to large segment cars", Central Board of Excise and Customs (CBEC) said in a circular.
Finance Minister P Chidambaram in his Budget speech had said: "SUVs occupy greater road and parking space and ought to bear a higher tax. I propose to increase the excise duty on SUVs from 27 percent to 30 percent. However, the increase will not apply to SUVs registered as taxis."